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I think that at our school, they are "tested in" to see where they should be placed in classes (which math level, which English class, etc) and then they are credited for courses below that class.

For my niece, she was placed at level when she entered public school...but a girl I worked with last year came in as a senior and basically could have been issued a diploma. She only came because she was sick of her mom and wanted to play volleyball (we had this conversation because I am a teacher that homeschools my own children and wanted to know how children felt about it), and they basically let her tutor other kids or take whatever classes she wanted for the day.

If your sending your kid back to public school, then they will be tested to see what grade they need to enter. I know because I had to do this with my kids. If you are wanting to send them to college, well, they have to take the GED test.. So they can enter college...I know because my daughter just went to college this year. Homeschooling is not credited, thats why the kids have to take these test. The states recongnize homeschooling, there just not credited.

That must vary by state, because here, parents can issue a diploma and at least at community college, they rarely require a GED or diploma to take classes. If you want to pay, they'll let you sit, basically, but you have to take their entrance exam.

When we home-schooled, we used a religious umbrella school. They kept up with all of our paperwork for us. I just had to turn it in quarterly to them. When my son decided he wanted to go back to a regular school setting we just had his transcript sent from the umbrella school to his new school. Easy as pie. :)